COTY INC.

Coty Inc.

Overview

Coty Inc. is a global beauty company focused on fragrances, color cosmetics, and skin and body care. The company manages a portfolio of owned and licensed mass and prestige brands and pursues strategic portfolio management and operational efficiency under its Coty.Curated framework. Growth priorities include e-commerce and travel retail, select profitable categories, and strengthened consumer engagement.

What the company does

• Owns or licenses a broad mix of mass and prestige beauty brands across fragrance, cosmetics, and skincare.
• Manages both perpetual and time-limited licenses alongside owned brands.
• Markets products in about 122 countries through mass and multi-channel retailers, prestige retailers, e-commerce, direct-to-consumer and duty-free channels.
• Invests in marketing, digital advocacy, AI-driven media allocation, content creation, and consumer data analytics to build brand equity and drive growth.
• Emphasizes sustainability, governance, and ethical sourcing through the Beauty That Lasts program.

Key quantitative details (as of June 30, 2026)

• Employees: approximately 11,335 employees in over 37 countries.
• Global reach: products marketed and sold in about 122 countries; dedicated local sales forces in major markets.
• Revenue footprint:
  • ~73% of net revenues in fiscal 2026 were generated outside North America.
  • ~66% of fiscal 2026 net revenues were attributable to the Prestige segment.
  • ~85% of Prestige net revenues came from the top seven Prestige brands.
  • 48% of fiscal 2026 net revenues were under brands owned by Coty or licenses that are effectively perpetual.
  • 37% of fiscal 2026 net revenues were under exclusive license agreements with remaining terms of 6 to 24 years.
• Impairment charges:
  • Fiscal 2025: $212.8 million (indefinite-lived intangible assets and Philosophy trademark).
  • Fiscal 2026: $362.8 million in asset impairment charges, including $237.1 million related to goodwill in the Consumer Beauty segment and $50.6M, $48.5M, $22.5M, and $4.1M related to the CoverGirl, Sally Hansen, Max Factor, and Bourjois trademarks in Consumer Beauty.
• Indebtedness and liquidity:
  • Maintains substantial indebtedness under a 2018 Coty Credit Agreement and senior secured notes.
  • Senior secured notes maturing in May 2027.
  • 2023 Revolving Credit Facility maturing in July 2028.
  • Debt covenants and potential refinancings are material considerations for flexibility and liquidity.
• Ownership and governance:
  • JAB Beauty B.V. and affiliates own approximately 54% of the fully diluted Class A Common Stock, giving them significant influence over board and major decisions.
  • Coty is a “controlled company” under NYSE rules due to majority voting power held by JABH affiliates.

Brand portfolio and licensing

• Portfolio includes owned and licensed brands across fragrance, color cosmetics, and skincare.
  • Prestige and fragrance brands include Burberry, Calvin Klein, Gucci, Jil Sander, Hugo Boss, Tiffany & Co., and Versace-related brands.
  • Mass-market and consumer brands include CoverGirl, Sally Hansen, Rimmel, Max Factor, Bourjois, and Kylie Cosmetics by Kylie Jenner.
• Licensing arrangements are material to revenue: 48% of net revenues from owned or effectively perpetual licenses; 37% from exclusive worldwide or regional licenses with 6–24 years remaining.
• Gucci Beauty license transition:
  • In July 2026, Coty agreed to transition the Gucci Beauty license back to Kering one year before expiration, in exchange for cash proceeds.
  • Coty will continue to operate the Gucci Beauty brand through at least June 30, 2027.

Strategy and operations

• Coty.Curated priorities: focus the portfolio on fewer, larger brands; improve marketing efficiency; increase supply reliability; deepen consumer engagement; and make innovation more productive.
• Growth focus:
  • Build on fragrance leadership to support expansion.
  • Target structurally profitable and growing beauty categories.
  • Expand e-commerce and Travel Retail channels.
  • Pursue market share growth in Prestige and Consumer Beauty and accelerate data-driven operations.
• Global footprint and supply chain:
  • Manufactures about 81% of products in-house across the U.S., Brazil, and Europe; sources about 19% from third-party manufacturers.
  • Maintains a global supply chain hub in Barcelona to improve efficiency, service levels, inventory management, and carbon impact.
• Innovation and marketing:
  • Uses AI tools for media allocation, content creation and optimization (including translation and SEO), and generative engine optimization.
  • Invests in digital advocacy, influencer partnerships, and editorial coverage.
  • Many products are based on patented or proprietary technology and are developed through internal R&D and external affiliations.

Intellectual property and licensing risk

• Owns or licenses a large set of trademarks in key markets (Class 3 for cosmetics and perfumery).
• Licenses generally include royalties, minimum sales commitments, and quality controls; many provide renewal options under variable conditions.
• The company manages ongoing risks from IP claims, counterfeit goods, and potential license terminations or non-renewals.

Markets and customers

• Distributes through mass retailers, department stores, specialty retailers, e-retailers, duty-free shops, and direct-to-consumer channels.
• No single retailer accounted for more than 10% of global net revenues in fiscal 2026, though some retailers exceeded 10% in specific geographies or segments.
• Substantial international exposure: about 73% of net revenues generated outside North America.

People and governance

• Workforce: approximately 11,335 employees across more than 37 countries, with a significant seasonal workforce at peak periods.
• Governance: JABH-affiliates hold significant influence over the Board; Coty qualifies as a controlled company under NYSE rules.

Corporate responsibility and governance

• Sustainability program: Beauty That Lasts is organized around three pillars — Beauty of our Planet, Beauty of our People, and Governed Beautifully — and focuses on sustainable packaging, ethical sourcing, and supply chain practices.
• Compliance and ethics: the company maintains ESG compliance programs and supplier ethics initiatives, including Coty.Allyance launched in fiscal 2026.
• Responsible business practices include governance for AI use, data privacy, and ongoing risk management overseen by a Sustainability Office and the Board.